Stores Beat Robots as Kroger Opts for $350 Million Ocado Pay Off

Maybe the robots aren’t coming for us after all, as grocery retailer Kroger confirmed its retreat from its once-ambitious partnership with fulfillment specialist Ocado.

The decision may have delivered a windfall to the U.K. automation specialist but underscores mounting pressures facing the largest traditional grocer in the U.S. as it rethinks how best to serve online customers.

Ocado will receive a one-time payment of $350 million from Kroger after the chain decided to shutter three of its automated customer fulfillment centers and curb plans for a broader nationwide rollout.

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